Renew On Line (UK) 34

Extracts from the November-December 2001 edition of Renew
These extracts only represent about 25% of it

1. PIU on Renewables

The Cabinet Office Performance and Innovation Unit has been looking at the future of renewables fifty years on, with this study feeding into a wider study of all energy options, including nuclear. The results should emerge soon - including proposals for the allocation of the £100m promised for new renewables.

As part of this work, the PIU organised meetings to glean the views of potential stakeholders, including the various generation interests, and environmental groups. Reports from these meeting are on the PIU web site, as are the various submissions to the review. It’s almost virtual public inquiry on the future of energy policy - 448 submissions were received.

http://www.cabinet-office.gov.uk/innovation/2001/energy/energyscope.shtml

One key submission was from the Department of Trade and Industry (DTI). In its preliminary outline of views, it raised the following very pertinent questions:

* to what extent can renewables replace fossil fuels as a source of electricity, how quickly, at what cost, and, with what impact on security - a more diverse mix, but including some intermittent sources

* embedded generation brings greater diversity in supply but how does this weigh against increased reliance on local balancing

* to what extent can we rely on competitive markets to deliver infrastructure requirements and supply security.

* how can higher energy prices, if needed to meet environmental objectives, be reconciled with fuel poverty, business competitiveness, and public sector funding costs.

DTI estimates for 2050	p/kWh
Onshore wind	2.25
Offshore wind	2.3
Wave	3.2
Energy Crops	3.05
Nulcear	2.6
Gas	2.31

It’s not a bad overview - and provides guesstimates (seeabove) for the minimum price of power by 2050. Although it obviously sees a place for renewables, and is very upbeat about offshore wind, the DTI also concludes that ‘there are prospects for new (nuclear) build to be economic’, at least in the longer term. ‘Based on current costs, new nuclear build on current technology is probably not economic... However, looking towards 2050, cost reductions with new designs are possible’.

www.cabinet-office.gov.uk/innovation/2001/energy/EPQw.pdf

In addition to the submissions, and some useful ‘scoping notes’ on renewables, coal, gas, CHP etc., the PIU Web site contains some indications of what might be in its final report - for example the group meeting on 25 Sept received a provisional outlineand first draft (it’s on the web site), hedged with caveats about being interim, which is fairly downbeat about nuclear, and very positive about renewables, with some quite favourable generation cost estimates for 2020- on-land wind 1.5-2.5p/kWh, offshore wind 2-4p, energy crops 3-4p and wave 3-6p. It puts nuclear at 3-4.5p. But it’s also noted that ‘even a 100% non-fossil power generating system would not allow the achievement of the RCEP’s target (a 60% emission cut by 2050). Substantial changes in the heating fuel and transport fuel markets are required as well’. And, it added, that was only likely to occur in futures which emphasised environmental protection strongly. We will have to await the final report to see what else they came up with.

* Practicing what it preaches, the Cabinet Office also announced that it was now contracted to run on 100% green power- with the PIU’s building signing up with TXU Europe and other buildings, plus No. 10, signing up with British Energy. See NATTA’s new report ‘Greening Electricity’ for more on developments in the green power market- £2